Some independent petroleum marketers in the Federal Capital Territory have slashed the pump price of Premium Motor Spirit, popularly known as petrol, to N915 per litre, down from N930, amid sliding global crude oil prices and improving supply conditions.
A survey conducted by The PUNCH on Tuesday revealed that two A.Y.M Shafa stations along Airport Road in Abuja adjusted their prices to N915 per litre, reflecting a N15 reduction from Monday’s rate. Similarly, the Matrix Energy station along the same axis implemented an identical price adjustment.
However, NIPCO outlets lowered their pump price to N925 per litre, down from N950, while Conoil sold at N935.
The reduction in pump prices comes on the heels of recent volatility in global oil prices, triggered by rising supply and declining demand forecasts.
On Monday, the price of Nigerian crude fell below the Federal Government’s 2025 budget benchmark of $75 per barrel, raising concerns over revenue shortfalls.
While Nigeria’s Bonny Light traded at $78.62 per barrel, other key crude grades such as Brass River and Qua Iboe fell to $64.60 and $64.65 per barrel, respectively.
The dip followed statements by members of the Organisation of the Petroleum Exporting Countries and its allies, indicating plans to ramp up oil production, stoking fears of oversupply in a softening global market.
Oil and gas analyst and Chief Executive Officer of Petroleumprice, Olatide Jeremiah, described the development as a “double-edged sword” for Nigeria.
He noted that while the drop in crude oil prices may ease inflation and reduce energy costs for households and businesses, it also poses a significant risk to the country’s fiscal outlook.
“Sadly, since our budget is benchmarked at $75 and Brent crude trades for $60- $15 less, this will trigger a recession in the Nigerian economy as crude oil is projected to remain between $60 and $63 throughout 2025,” Jeremiah warned.
He added that Nigerians could see petrol prices fall to N800 per litre and diesel to N1,000 per litre if the global oil slump persists.
Confirming the expected adjustments, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said the pricing of refined petroleum products in the country is tied closely to international crude benchmarks and the naira-dollar exchange rate.
“Marketers have made it clear that the increase and decrease in domestic petroleum product prices are benchmarked against the dollar and the price of crude oil in the international market,” Ukadike said.
He added that the Federal Government’s decision to sell crude oil to the Dangote Refinery in naira could accelerate the decline in pump prices.
“We are anticipating that within a short period, these prices would reflect at the gantry, which will translate to the pump price. We expect the indices to affect individual importers and refiners, and a significant drop will be released,” he said.
Meanwhile, the landing cost of imported petrol has dropped to N849.27 per litre, N5 closer to N835 per litre offered by the Dangote Refinery.
